Off-Site Inventory Management: Why is it profitable?
Inventories! Without this eCommerce companies are zero. This is the most important aspect that makes an eCommerce company a Winner. What type of products you offer? Do you have enough quantity of products with you that will help you sustain for a longer time? Answering these questions is important. Also important is to take down the challenges caused due to inventory management as we see these days most of the eCommerce companies are struggling to manage their inventories. Many startup eCommerce companies have very limited budget and space. Even if they want to offer large product lines to their loyal customers, there are a lot of challenges that these startups face while storing the products at their location. In such situation expanding the product offerings become a lot more challenging.
Still, if your company has decided to take off with expanding your product offerings even if you face the problems related to limited space and you probably might be thinking of finding a bigger warehouse or switching to a better location, we would like to let you know that off-site inventory management will be a perfect solution to your problem. It has a lot of benefits in case of any eCommerce company. We will discuss some of them here.
No worries related to your own warehouse
When your company itself start managing the inventories, you will need to cover the cost incurred due to the warehouse space, other overhead costs and the costs related to the employees in the warehouse. This is a bit challenging for startups. Now, as your company starts expanding and as time passes, you need to manage them along with your office and your company staffs.
Instead, when you start managing your inventory off site, your company will not have to deal with all the costs and the work involved while owing a warehouse. Instead of handling the inventory management by yourself, you can trust some other company and ask them to take care of that work on behalf of you. In this case you only need to pay for the inventory management of the products that are being ordered, instead of the other upfront costs that is associated with the running a warehouse. With this you don’t have to think about inventory management as you can rely on the other company that is well experienced in inventory management and can now put efforts in only expanding your business.
Easily control your inventories
This doesn’t mean that you completely have to hand over your inventory management to another company. In this case you will have no idea about what is going on with your inventories. Instead, you still can have control over your inventories. With this you can manage your business and also you will be able to track all your inventories that are in stock at the off-site location.
You can easily handle the ordering fluctuations
One of the common challenges that any eCommerce website faces, whether it is a startup or an established brand is handling those extra orders during the seasons. When a business starts growing quickly and you have outsourced your fulfillment service to a reputed organization that can easily handle these changes, without making you worry about it, this will have a positive impact on your company as you can easily handle those extra orders without the need of running around to accommodate them. We assure you that using off-site inventory management will be a profitable experience for you.
You can now focus on other areas of business
When you are relieved from the task of inventory management, you are now free to put your time and efforts in other resources and can easily focus on other things like ways to retain customers and inventing other marketing tactics to attract new customers. Also now you can devise effective marketing efforts that will grow your company quickly as your off-site inventory management services will always be prepared for your quick growth. You need to now focus only on the office team and the off-site team will do the rest.
Less cost of shipping
Managing the inventories is the specialty of any inventory fulfillment company. With this they will be able to easily engage in bulk shipping. This will help you a lot in reducing the shipping cost of your products. These companies will have more affordable alternatives that will help them in cutting down the shipping costs. These shipping savings will be helpful for your company and for your customers, as this will make them ready to purchase from you, and also make them become repeating customers.
Hope these benefits will help you to think about implementing off-site inventory management in your business too!